Tech3 | Why Go Digit is leaving money on the table; It's India wapsi for Binance, KuCoin; and more

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In today’s newsletter:?

• Why Go Digit is leaving money on the table
• It's India wapsi for Binance, KuCoin
• Wipro CEO makes his first move

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Why Go Digit is leaving money on the table

Go Digit’s IPO is all set to open on May 15, and it is not priced to perfection, for good.

Driving the news: In times when new-age tech firms learned the hard way to price their IPOs fairly, insurtech firm Go Digit chairman Kamesh Goyal claims to have diligently considered investor feedback to offer a reasonable value.?

“People (companies) who are coming now are coming at a lower value. Customers or potential retail investors should be happy,” Goyal said.

The Fairfax Group-backed firm has fixed its price band in the range of Rs 258-272 per share with the aim of raising Rs 2,614 crore.?

• Valued at $3.58 billion in the last private round, the issue price values the firm at slightly less than $3 billion

Reduced IPO size:?The insurtech firm has downsized its IPO issuance by over 40%, with an adjusted target to raise Rs 1,125 crore.?

Furthermore, the offer for sale (OFS) component of the IPO has also undergone a significant reduction.

• Goyal attributes the downsizing to the IPO delay,?which prompted Go Digit to raise Rs 200 crore through NCDs in December.

Lessons from the past: In a market where the initial quarters post-listing have been a trial by fire for many tech firms, Go Digit’s cautious pricing strategy reflects a keen awareness of past pitfalls.?

By avoiding the aggressive pricing seen in the debuts of Paytm, Nykaa, Delhivery, and Zomato, the company aims to shield investors from wealth erosion and market turbulence.

• These tech IPOs have experienced drawdowns ranging from 30-70% from their listing price

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